{
  "title": "Monetary Policy Under Labor Market Power",
  "publication": "IMF Working Papers, July 1, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2022/07/01/monetary-policy-under-labor-market-power-520239",
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  "summary": "Using the near universe of online vacancy postings in the U.S., we study the interaction between labor market power and monetary policy. We show empirically that labor market power amplifies the labor demand effects of monetary policy, while not disproportionately affecting wage growth.",
  "sections": [
    {
      "heading": "Authors and publication",
      "content": "- By Anastasia Burya, Rui Mano, Yannick Timmer, Miss Anke Weber\n- July 1, 2022\n- IMF Working Papers, Working Paper No. 2022/128\n- Pages: 46\n- Volume: 2022\n- Issue: 128\n- DOI: https://doi.org/10.5089/9798400211812.001\n- Stock No: WPIEA2022128\n- ISBN: 9798400211812\n- ISSN: 1018-5941\n- Citation preview shown with access date: accessed 9/16/2026"
    },
    {
      "heading": "Data and approach",
      "content": "- Uses the near universe of online vacancy postings in the U.S.\n- Combines empirical analysis with a search and matching model where firms can attract workers by either offering higher wages or posting more vacancies."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Labor market power amplifies the labor demand effects of monetary policy.\n- Labor market power does not disproportionately affect wage growth.\n- Vacancy postings that do not require a college degree or technology skills are more responsive to monetary policy, especially when firms have labor market power.\n- These patterns help explain:\n  - The “wageless” recovery after the 2008 financial crisis.\n  - The flattening of the wage Phillips curve, especially for the low-skilled, who experienced stagnant wages but a robust decline in unemployment."
    },
    {
      "heading": "Theoretical mechanism",
      "content": "- A search and matching model where firms can attract workers via:\n  - Offering higher wages, or\n  - Posting more vacancies\n- This model can rationalize the empirical findings that monetary policy effects on labor demand are amplified by labor market power, without producing proportionate wage responses."
    },
    {
      "heading": "Key subjects and keywords",
      "content": "- Subject: Employment; Labor; Labor demand; Labor markets; Labor share; Unemployment rate; Wages\n- Keywords: Employment; Global; Labor demand; labor demand effects of monetary policy; Labor market power; Labor markets; Labor share; Monetary Policy; monetary policy shock; technology skill; Unemployment rate; Vacancies; vacancy posting; wage Phillips curve; Wages\n\nIMF Working Paper: \"Monetary Policy Under Labor Market Power\", IMF Working Papers 2022, 128 (2022), DOI: https://doi.org/10.5089/9798400211812.001\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/07/01/monetary-policy-under-labor-market-power-520239"
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    "Authors: Anastasia Burya, Rui Mano, Yannick Timmer, Anke Weber",
    "Published: July 1, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400211812.001",
    "By Anastasia Burya, Rui Mano, Yannick Timmer, Miss Anke Weber",
    "July 1, 2022",
    "IMF Working Papers, Working Paper No. 2022/128",
    "Pages: 46",
    "Volume: 2022",
    "Issue: 128",
    "DOI: https://doi.org/10.5089/9798400211812.001",
    "Stock No: WPIEA2022128",
    "ISBN: 9798400211812",
    "ISSN: 1018-5941",
    "Citation preview shown with access date: accessed 9/16/2026",
    "Uses the near universe of online vacancy postings in the U.S.",
    "Combines empirical analysis with a search and matching model where firms can attract workers by either offering higher wages or posting more vacancies.",
    "Labor market power amplifies the labor demand effects of monetary policy.",
    "Labor market power does not disproportionately affect wage growth.",
    "Vacancy postings that do not require a college degree or technology skills are more responsive to monetary policy, especially when firms have labor market power.",
    "These patterns help explain:",
    "A search and matching model where firms can attract workers via:",
    "This model can rationalize the empirical findings that monetary policy effects on labor demand are amplified by labor market power, without producing proportionate wage responses.",
    "Subject: Employment; Labor; Labor demand; Labor markets; Labor share; Unemployment rate; Wages",
    "Keywords: Employment; Global; Labor demand; labor demand effects of monetary policy; Labor market power; Labor markets; Labor share; Monetary Policy; monetary policy shock; technology skill; Unemployment rate; Vacancies; vacancy posting; wage Phillips curve; Wages",
    "**Working Paper**"
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